Jefferies initiates coverage on Crescent Biopharma stock with Buy rating

Investing.com - Jefferies initiated coverage on Crescent Biopharma Inc (NASDAQ:CBIO) with a Buy rating and set a price target of $26.00. The stock, currently trading at $15.06, has shown strong momentum with a 9.21% return over the past week. According to InvestingPro data, analyst targets range from $22 to $28, suggesting significant upside potential.

The research firm views CBIO’s lead asset CR-001, a PD-1×VEGF bispecific antibody, as promising despite being in the preclinical stage. Jefferies sees an "intriguing risk-reward" opportunity at the current market capitalization of approximately $200 million. InvestingPro analysis shows the company maintains strong financial health with an excellent overall score of 3.8 and a robust current ratio of 3.62, indicating solid liquidity management.

Jefferies expressed confidence in the PD-(L)1×VEGF class and believes novel-novel combinations will be key to success. The firm also noted that CBIO’s internal ADC portfolio and U.S.-only studies could help close the competitive gap.

The research firm identified potential fast paths to market in certain indications, such as second-line metastatic colorectal cancer. Jefferies models approximately $1 billion in risk-adjusted peak sales for the company.

Crescent Biopharma is currently trading at an enterprise value of approximately $50 million, which Jefferies considers attractive given the company’s oncology pipeline and future potential, despite concerns about the PD-1×VEGF class and the early stage of development.

In other recent news, Catalyst Biosciences (NASDAQ:GYRE) has been the focus of analyst attention with both H.C. Wainwright and Wedbush initiating coverage on the company. H.C. Wainwright assigned a Buy rating with a $25.00 price target, citing the company’s attractive valuation and potential as a merger and acquisition target. Wedbush rated the stock as Outperform with a slightly higher price target of $27.00, noting the company’s development of oncology-focused assets, including a PD-1 x VEGF bispecific. Meanwhile, Crescent Biopharma has appointed Jan Pinkas as its new chief scientific officer, bringing over two decades of oncology drug development experience to the role. This move adds significant expertise to Crescent Biopharma, particularly in antibody-drug conjugates. Additionally, GlycoMimetics has announced a 1-for-100 reverse stock split, set to take effect in June 2025, following its anticipated merger with Crescent Biopharma. This strategic decision will significantly reduce GlycoMimetics’ outstanding common stock while keeping the total authorized shares unchanged. These developments reflect ongoing strategic maneuvers within the biotech sector.

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